Employee compensation should include medical benefits that are both cost-effective and comprehensive. There are approximately 300,000 people covered by Maine's healthcare system, including those who work for companies such as Hannaford Bros. Co. or The Cianbro Companies.
The Affordable Care Act (ACA) requires businesses with 50 or more employees in Maine to provide healthcare to their staff. Since this may be done in a variety of ways, we've divided it out based on small employers (1-50 workers) and large employers (51 or more employees).
Among small employers in Maine, 68% provide access to medical benefits for their employees, and 65% of employees take full advantage of the offering. With 19,700 small employers in Maine representing over 70,000 employees, the employer covers approximately 75% for single employees and 70% for families. From this, the employer pays an average of $483 each month for an individual and $1321 for a family. The employee also has a monthly premium to pay, which costs $160 for a single employee and $561 for a family. The individual family component can cost $366 at the 25th percentile to $721 at the 75th percentile.
When choosing a plan design, 21% of small employers' employees select a high deductible health plan, 18% opt for an HMO, and 38% pick a PPO. Having several plan types to pick from allows for coverage options that range from a restricted network with access to certain PCPs, specialists, and hospitals to an open network with access to numerous physicians and hospitals.
To assist and manage costs while still paying efficiently, Maine small businesses may provide employees with tax-optimizing healthcare savings accounts (HSAs) or healthcare flexible spending accounts (FSAs). 33% of Maine's small employers offer an HSA, while 44% offer an FSA. Both are excellent methods for employers to support staff in managing their medical expenditures in the most cost-effective way possible.
Dental benefits are provided by 40% of small businesses, whereas only 14% offer vision, which is far lower than large corporations. This is a highly desired benefit, with 76% utilizing dental care and 78% utilizing vision care. As a result, dental and vision coverage are important features for employers when selecting their comprehensive benefits package.
The 8,000 large employers in Maine provide medical coverage to over 313,000 individuals across the state. Larger employers, in general, are able to provide most comprehensive medical coverage for their employees. The percentage of employees at large employers in Maine that take advantage of this benefit is 71%. Large Maine employers cover an average of 78% of the monthly premium for single employees and 78% of the premium for families. This equates to an employer cost of $547 per month for a single person and $1630 for a family. For the employees, this equates to an average of $158 cost per month for single employees and $454 for families, with costs ranging from $105 each month for a family at the 25th percentile and $193 for a family at the 75th percentile. If you are lucky, 5.7% of large Maine employers cover all medical expenses for single individuals and 3.6% for families.
Plan types are determined by a variety of criteria, depending on the demographics of the workforce. In Maine, 43% of workers opted to join PPO plans, 19% selected an HMO, and 35% picked a High Deductible Health Plan when enrolling in PPO plans. The plan type determines the breadth of coverage available at physicians' offices and hospitals. It also influences copays, deductibles, and other elements.
It's critical for businesses to help their employees budget medical bills tax-wise. Two of the most popular methods are a Flexible Spending Account (FSA) and a Health Savings Account (HSA). HSAs are offered by 53% of large Maine companies, while FSA accounts are available by 71%.
Larger employers have a greater offering rate than smaller businesses when it comes to dental and vision plans. In Maine, 64% of large employers provide dental coverage, whereas 81% of small companies do the same. 31% of organizations in Maine offer vision insurance, and 78% utilize the benefit.
If you want assistance in selecting an insurance broker that specializes in medical benefits in your region, contact Mployer Advisor right now. Whether you're a small or large business in Maine, choosing a broker is a significant decision.
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